•In the 1970s, Japan began to export manufactures to the U.S. on a large scale.
•The then salary differential between the U.S. and Japan was on the order of 2-1.
•That, plus bold innovations that gave Japanese firms higher efficiency, was enough to cause a substantial hollowing-out of American midwestern manufacturing.
•Real wages did not grow for a decade (while they had been growing at 3% per year beforehand).
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